This is a randomized clinical trial of any therapy for Wegener's Granulomatosis (WG). The purpose of the study is to test whether blockade of TNF alpha results in clinical improvement in patients with limited and severe WG. The investigators will test the ability of etanercept to induce and maintain remission as standard therapies are tapered. The investigators plan to measure clinical outcome based on the standardized Birmingham vasculitis activity score (BVAS) instrument. They also plan to measure tapering of steroids and immunosuppressants as secondary outcomes. The trial combines two unique resources, the International Network for the Study of Systemic Vasculitides and the Centers for Clinical Studies at John Hopkins University. The study will be a double-blind, placebo-controlled, multicenter study involving 190 patients.